CAPITAL RAISES
*Week 19 was another strong week for capital raises with 11 transactions raising a total of $199.2 million, although this was down vs. a very strong week 19 in 2019, which saw 25 transactions totaling $486.7 million.
*Since bottoming out in mid-April at the height of the COVID-19 pandemic, we are seeing a clear uptick in investment activity in the industry.
*The increase in aggregate capital raised was primarily due to Constellation Brands (NYSE: STZ and STZ.B) decision to exercise nearly 18.9M warrants to buy Canopy Growth Corp. common shares (TSX: WEED, NYSE: CGC). On issuance, those shares made up about 5.1% of outstanding shares of Canopy Growth and were issued in November 2017 to Constellation indirect subsidiary Greenstar Canada. They were exercised at C$12.9873 per common share, an aggregate of about C$245M. With the new shares, Constellation Brands boosts its ownership to 38.6%. And assuming full exercise of all remaining warrants and full conversion of notes, Constellation would own about 55.8%.
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May 4th - May 8th, 2020